Best Fit Out Finance Options

Fit-Out Finance in Australia is a type of business finance used to refurbish businesses and franchises. The amount you can borrow will vary from lender to lender with an average of around $300,000. Fit-out loans can be applied for online with specialist finance lenders, and terms will vary as well, sometimes up to five years.

In summary:

• Can be used to finance a wide range of minor fittings
• Is used for stores, restaurants, shops, offices, factories, warehouses, and medical practices
• Can be obtained from banks, non-bank lenders, specialists, and through finance brokers
• Will often require a business plan to present to the lender

Use restaurant fit-out finance to fund everything you need for your new cafe or restaurant. You can use a restaurant fit-out loan to purchase kitchen and front-of-house equipment, and even use it to decorate your space with artwork and dining tables.

Restaurant fit-out finance can allow you to purchase:

• Furniture such as couches, chairs and tables
• Staff benches and counters
• Sales and front-of-house counters
• Lighting, electrical work and fittings
• Kitchen appliances such as dishwashers or fridges
• Kitchen installations such as cabinets and drawers
• Glassware and storage areas
• Toilets and sinks
• Tiling, carpet, or other flooring
• Cold storage rooms
• Branded signage
• Security monitoring systems
• Artwork
• HVAC units
• EFTPOS machines and facilities

Qualifying for a fit-out loan is relatively simple. Most lenders will be able to offer you fit-out finance options if you have:

• Been trading for at least 9 months; and
• Have an ABN (Australian Business Number); and
• Are registered for GST

While most lenders will prefer you have been actively trading for a minimum of 9 - 12 months, you can still apply and get approved for fit-out finance if you have been trading for less than 9 months.

Fit-out finance falls under the same application process as other types of equipment finance. You’ll qualify for fast approval using a streamlined application process if you are applying for finance up to a total value of $100,000 and you:

• Have been in business 24 months; and
• Have an ABN; and
• Are registered for GST; and
• Own a home

If you fall outside the above criteria, or are wishing to apply for a fit-out loan greater than $100,000, the application process will be much the same albeit longer and requiring a greater amount of supporting documentation to gain approval.

Before applying for fit-out finance, you’ll want to research lenders and get a firm understanding of the required documentation. Although some types of documentation will remain consistent between lenders — such as proof of identity — the depth of others may vary.

For example, some lenders may require financial records of a specific historical length, while others may request a business plan to support your application.

In general, you will need to supply a range of supporting documents, such as:

• Proof of identity
• Financial records for the previous 2 - 3 years (provided by your accountant)
• Profit and Loss Statements Balance Sheet
• Details of your fit-out purchases
• Business bank statements
• Rates notice (if you own a home)
• Rental agreement (if you are renting)

You may also be asked to provide a business plan:

• Lenders will often request a business plan when assessing fit-out finance loans. This is to illustrate how you expect your business to perform over the next few years (the term of the loan) and how the fit-out loan will assist in adding value to your business to increase profits and cash flow.